BRK.B Berkshire Hathaway 10-Q 2026-09-30 section summaries

Berkshire Hathaway — nine months ended September 30, 2026

Consolidated results

Q3 revenue increased 11.2%, versus 8.6% growth for 9M. The Q3 decline in pretax earnings and shareholder earnings reflected substantially lower investment gains, despite higher revenue; operating-business pretax earnings declined less sharply. Equity-method results also improved from a $4.289B Q3 2025 loss to $1.403B of earnings in Q3 2026. Investment gains remain a material source of earnings volatility, driven largely by equity-security fair-value movements.

Q3 segment results

Insurance pretax earnings weakened, including underwriting earnings of $1.683B versus $3.163B and investment income of $3.319B versus $3.716B. Manufacturing and BNSF expanded revenue and earnings, while McLane declined. Manufacturing revenue growth accelerated to about 19.7% in Q3 from 14.4% for 9M; Pilot’s growth was about 48.4% versus 34.7%. Pilot’s Q3 earnings improved from a prior-year loss. Service-and-retailing 9M pretax earnings were $3.490B versus $3.026B; McLane’s were $0.452B versus $0.530B.

Cash flow and capital allocation

Berkshire repurchased $13.757B of shares in 9M, including $9.647B in Q3, compared with no repurchases in the comparable 2025 period. Repurchases are discretionary and subject to a minimum $30B balance of cash, cash equivalents and Treasury bills. Cash and cash equivalents were $40.700B and short-term U.S. Treasury bills $336.735B at September 30, versus $51.877B and $321.434B at year-end 2025. Nine-month cash, cash equivalents and restricted cash declined $10.911B; Treasury bill purchases of $527.197B were partly offset by $462.315B of sales, redemptions and maturities. A $20.489B payable for Treasury bill purchases was paid shortly after period-end.

Balance sheet, debt and investments

Other intangible assets comprised customer relationships ($21.468B), trademarks and trade names ($8.556B), patents and technology ($1.089B), and other intangibles ($3.141B). Goodwill included $56.441B in Insurance and Other and $26.978B in Railroad, Utilities and Energy; it was net of $13.0B accumulated impairments. Equity securities included $227.053B of net unrealized gains; the five largest holdings—Alphabet, American Express, Apple, Bank of America and Coca-Cola—represented 65% of equity-security fair value. Fixed-maturity securities had $17.082B fair value; nearly 95% of foreign-government holdings were rated AA or higher.

Insurance and Other borrowings were $45.767B, and Railroad, Utilities and Energy borrowings were $85.016B. Berkshire repaid about $3.7B of maturing debt and issued ¥272.3B ($1.7B) of senior notes at a 2.4% weighted-average rate. BHE subsidiaries issued $4.8B of term debt at a 5.8% weighted-average rate. Available subsidiary credit lines and commercial-paper capacity were about $13.2B, including $10.4B for BHE and subsidiaries. Berkshire guarantees BHFC senior notes and about $3.2B of certain subsidiaries’ debt, but does not guarantee BHE or BNSF debt.

At September 30, outstanding shares were 481,584 Class A and 1,405,974,025 Class B, versus 515,835 Class A and 1,383,582,639 Class B at year-end. During 9M, Berkshire repurchased 5,047 Class A and 21,414,614 Class B shares; conversions included 29,204 Class A shares into 43,806,000 Class B shares.

Acquisitions, insurance and material risks

Berkshire completed its $9.4B cash acquisition of Occidental’s OxyChem on January 2 and its approximately $6.8B cash acquisition of Taylor Morrison Home Corporation on July 24. The acquired businesses’ preliminary combined assets were $21.260B, liabilities assumed $5.038B and net assets $16.222B. OxyChem’s legacy environmental liabilities remained with Occidental.

Net unpaid property-and-casualty claim liabilities were $120.200B, versus $115.198B a year earlier. Favorable prior-accident-year reserve development was $2.301B in 9M, versus $1.182B. No catastrophe event exceeding $150M occurred in 9M 2026, compared with $1.1B of Southern California wildfire losses in 9M 2025. Berkshire’s 2016 retroactive-reinsurance contract commutation involved a $1.12B payment and eliminated further obligations.

PacifiCorp wildfire litigation is the principal disclosed contingent risk. Through September 30, PacifiCorp had accrued approximately $2.85B of cumulative probable wildfire losses, paid approximately $2.3B in settlements (including $595M in 9M), and estimated $566M of unpaid liabilities, down from about $1.2B at year-end 2025. No further insurance recoveries are expected; additional losses beyond accruals are reasonably possible, potentially material, and not currently estimable as a specific range. In the James class action, Phase II verdicts for 201 plaintiffs totaled approximately $1.25B net of estimated insurance offsets. In April 2026, the Oregon Court of Appeals reversed the Phase I liability verdict and remanded the case; Oregon Supreme Court review was allowed, with argument held November 3, 2026. Remaining claims and outcomes remain uncertain.

HomeServices’ antitrust exposure includes Texas claims asserting approximately $9B in damages. Its nationwide Burnett settlement requires $250M over four years, with $130M paid into escrow to date; appellate approvals were affirmed in 2026, although further review may be sought. Berkshire also reported remaining performance obligations of $23.962B for electricity and natural gas contracts and $11.508B for other sales and service contracts; $4.073B and $3.989B, respectively, are expected within 12 months.

Berkshire Hathaway — Q3 and first nine months of 2026

Earnings

Net earnings below are after tax, attributable to Berkshire shareholders and excluding noncontrolling interests.

Investment gains are volatile and, in management’s view, often do not indicate operating performance. Before tax, investment gains were $11.946B in Q3 2026 versus $21.939B in Q3 2025, and $26.418B for 9M 2026 versus $21.868B for 9M 2025. The 2025 first-nine-month comparison also included a $3.760B Kraft Heinz impairment. “Other” earnings reflect foreign-exchange movements and equity-method investment earnings.

Operating businesses

For 9M, BNSF revenue grew 11.5% to $19.391B and operating earnings grew 13.7% to $6.800B. Freight volume increased 4.2%, and average revenue per car/unit rose 7.1%, primarily due to fuel surcharges and yield. Consumer-products and agricultural/energy volumes grew, while coal volumes declined amid plant retirements and lower demand. Higher fuel prices and volume contributed to a 42.0% year-to-date increase in fuel expense.

BHE’s 9M revenue was $21.166B versus $20.078B, and attributable net earnings were $3.617B versus $3.288B. U.S. utilities benefited from higher volumes and rates; utility margin rose 8.2% to $7.1B, and retail volumes increased 5.5%. Growth was partly offset by higher operating, maintenance, depreciation and wildfire-prevention costs, as well as weaker results in other energy and real-estate brokerage. Results included significant production tax credits. BHE’s regulated rates require approval, and costs not recovered through approved rates can pressure results.

Manufacturing, service and retailing revenue increased 13.3% to $180.796B for 9M, with pre-tax earnings up 15.2% to $15.402B. Manufacturing revenue and pre-tax earnings were $67.241B and $11.037B, respectively, versus $58.782B and $9.547B. Service and retailing revenue was $113.555B versus $100.806B, and pre-tax earnings were $4.365B versus $3.826B. Industrial-products growth reflected acquisitions—including OxyChem—and gains at existing businesses. OxyChem, acquired January 2, contributed $1.3B of Q3 revenue and $71M of pre-tax earnings; its 9M contribution was $3.9B and $192M. Earnings include acquisition-accounting depreciation and amortization.

Building-products earnings weakened despite higher revenue: Q3 pre-tax earnings fell 3.4% and 9M earnings fell 1.5%. Homebuilding growth included TMHC, acquired July 24, which contributed approximately $1.1B of home sales through September 30. Consumer-products 9M revenue fell 2.3%; lower volumes and mix were partly offset by growth at several apparel and footwear businesses. Earnings comparisons were affected by refundable manufacturing tax credits included in Duracell’s Q3 2025 results.

Service revenue rose 23.3% in Q3 and 20.6% for 9M, led by TTI, aviation services and IPS; supplier constraints, inventory costs and tariffs may limit growth or pressure margins. McLane revenue declined 6.5% in Q3 and 4.2% for 9M, while pre-tax earnings fell 22.0% and 14.7%, respectively, amid weaker gross margins and lower inventory price-change gains. Pilot revenue rose 48.4% in Q3 and 34.7% for 9M, mainly on higher fuel prices; fuel-price and derivative timing can make its earnings volatile.

Insurance, investments and risks

Insurance float was approximately $178.5B at September 30, up $2.1B from year-end. Combined insurance operations generated underwriting earnings in both 9M periods, so average float cost was negative. Insurance cash, cash equivalents and investments totaled $585.113B versus $528.963B at December 31, 2025, including $230.941B of cash, cash equivalents and U.S. Treasury bills and $333.359B of equity securities. Treasury-bill totals included unsettled September purchases of $15.4B. Management prioritizes liquidity and safety over yield for short-term investments.

Insurance underwriting earnings declined as results weakened across underwriting groups. Berkshire reported no significant catastrophe losses in 9M 2026, compared with approximately $850M after tax in 2025. At GEICO, 9M underwriting earnings fell to $3.392B from $5.767B; the loss ratio rose 4.9 percentage points to 75.7% and the expense ratio rose 2.5 points to 14.3%, reflecting higher claim frequency and severity, lower average earned premiums per policy, and higher commissions and advertising. BH Primary’s 9M underwriting earnings rose to $868M from $425M, helped by a lower loss ratio and favorable reserve development. BHRG property/casualty reinsurance earnings rose to $2.554B from $2.178B, with a lower loss ratio and more favorable prior-year reserve development; its Tokio Marine quota-share agreement generated approximately $700M of premiums written through September.

Insurance results remain exposed to catastrophe timing, claims inflation, reserve estimates and competition. Estimated unpaid property-and-casualty losses and loss-adjustment expenses, including reinsurance, were $152.3B at September 30; actual amounts and payment timing may differ materially. Berkshire also cited geopolitical events, trade-policy changes and tariffs as potential sources of disruption to supply chains, demand and operating results.

Financial condition and cash flow

Capital expenditures included $10.2B at BNSF and BHE; those businesses forecast approximately $4.7B of additional 2026 capex. Berkshire repurchased $14.4B of treasury stock in 9M. Repurchases are discretionary, subject to management’s assessment of intrinsic value, and cannot reduce cash, cash equivalents and Treasury bills below $30B. Cash, cash equivalents and Treasury bills held by insurance and other businesses were $352.3B, net of payables for September purchases settled in October; equity and fixed-maturity securities totaled $352.6B.

Berkshire acquired OxyChem for approximately $9.4B and TMHC for approximately $6.8B in aggregate cash consideration. Borrowings excluding BHE and BNSF were $45.8B. Berkshire debt was approximately $20.4B, down $2.2B from year-end after $3.7B of maturities were repaid, partly offset by ¥272.3B ($1.7B) of senior notes issued in April at a 2.4% weighted-average rate. BHFC senior notes were approximately $18.2B; Berkshire guarantees their principal and interest. BNSF debt was $23.5B, down $535M, while BHE borrowings were $61.5B, up $2.2B. Berkshire does not guarantee BNSF or BHE debt.

The 2025 impairment review identified four reporting units with estimated fair values less than 20% above carrying values: $27.7B aggregate fair value versus $26.2B carrying value, including $9.2B of goodwill. Management concluded the assets were more likely than not not impaired at September 30, 2026, while noting adverse developments could lead to future impairment. Berkshire also highlighted exposure to market declines, catastrophes, geopolitical and cyber events, and regulatory, tax and economic changes.

As of September 30, 2026, Berkshire reported no material changes to the market risks described in its 2025 Form 10-K. For the detailed discussion, the filing refers readers to the 2025 Annual Report’s “Market Risk Disclosures”; this section provides no new market-risk metrics or developments.

Management, including the CEO and CFO, evaluated Berkshire Hathaway’s disclosure controls and procedures as of quarter-end and concluded they were effective in ensuring that material information required for SEC filings was recorded, processed, summarized, and reported on time. During the quarter, there were no significant changes in internal control over financial reporting, or other factors that could significantly affect those controls. This section reports no financial metrics or material business developments.

Berkshire Hathaway’s significant business risks are described in its 2025 Form 10-K and incorporated by reference. The section cautions that risks not currently known or considered material could also adversely affect the company’s business, financial condition, or operating results. Such effects could reduce the value of Berkshire Hathaway securities, and investors could lose some or all of their investment.

Trading Arrangements

Berkshire Hathaway had not adopted a Rule 10b5-1 trading arrangement. During Q3 2026, none of its directors or executive officers adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement. The section reported no financial results or other business developments.